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How to account for Post Dated Checks issued for Prepaid Expenses(e.g. Prepaid Rent): 1. Upon issuance of the check. 2. On the date of the check. 3. At the end of the reporting priod (but before the date of the check and before the the expiry of the prepaid expense)?

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Question ajoutée par Emmanuel Sibbaluca , Accountant , Jubaili Bros SAL
Date de publication: 2016/03/30
georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

Always considered issuing a check is issued legally payable but usual on the check payment

Babar Ali
par Babar Ali , Accountant , 1st4connect

How to account for Post Dated Checks issued for Prepaid Expenses(e.g. Prepaid Rent)

Keep it on a Temporary Payable or PDC A/c and at maturity transfer to Bank A/c or No entries with regard to payment until maturity. However, maintain a spreadsheet separately for PDCs issued.

Kripesh Krishnan Kutty Nair
par Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group

Kindly pass the necessary Journal Entries in your Books

1.On the date of cheque Issue

Prepaid Expense A/c Dr

  To Post Dated Cheque Issued

2. On the date of maturity of the cheque

Post Dated Cheque Issued A/c Dr

  To Bank

3.On the date of expense due

Expense A/c Dr

 To Prepaid Expense

Mohammad Iqbal Abubaker
par Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

I agree with the answer given by georgei assi   مدير حسابات  and also by all other team members.

Mohammad Ashi CFA CMA
par Mohammad Ashi CFA CMA , Group Finance Manager , QOAD

agree with Mr. George

thank you

حسين محمد ياسين
par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with answers >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Thank you for the invitation

 (The answer is no. (3

With my best wishes for you

Ahmed Mohamed Ayesh Sarkhi
par Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

wait more details from our expert

 

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